RuPay credit card-UPI linkage will enable UPI adoption and boost P2M transactions: RBI

The Reserve Bank of India’s proposition to connect UPI with RuPay Visas will empower the reception of UPI across organizations with different use cases for traders like overdraft offices, catch and hold facilities, and invoicing support, national bank said in its August notice. 

The linkage ought to give a fillip to UPI individual to-trader (P2M) exchanges which remained at Rs 769 for each exchange in July 2022. The move would likewise add to the rising portion of P2M exchanges altogether UPI exchanges, the RBI said.

“At present, more than 26 crore clients and 5 crore vendors are on the UPI stage,” RBI Governor Shaktikanta Das had said reporting the administrative move in June. 

As per the information from the National Payments Corporation of India (NPCI), 628.8 crore exchanges adding up to almost Rs 10.63 lakh crore were handled through UPI in July 2022, of which 299.9 crore were P2M exchanges adding up to Rs 2.30 lakh crore. 

For the year-prior period (July 2021), 324.7 crore UPI exchanges including Rs 6.06 lakh crore were handled, of which 125.7 crore exchanges were P2M adding up to Rs 99,597 crore.

Fintech additionally repeated the RBI’s view that linkage would get more merchants on the stage. 

"Today numerous shippers don't have Visa retail location (PoS) terminals, particularly in semi-metropolitan and rustic regions yet every one of these has UPI QR code-based acknowledgment. All such dealers will actually want to acknowledge credit installments through UPI," said Mandar Agashe, Founder and MD of installments arrangement organization Sarvatra Technologie


upi rupay

The linkage will additionally build the utilization of UPI in any event, for huge ticket things as the clients can have a decent choice to pick how they can pay. 

“Accordingly, it will enlarge the computerized installments impression in India, support dealer organizations of card networks beginning with local installments framework RuPay and in the end other worldwide players like Visa and Mastercard to lift client installments experience,” said Muralidharan Srinivasan, Head of Payments, APMEA Region, FIS. 

The organization gives innovative answers for merchants, banks, and capital business sector firms around the world.


The computerized vendor installments space, as a matter of fact, is supposed to get the following rush of disturbance the general installments biological system as 75% of dealers are presently covered by means of QR and furthermore through more prominent infiltration and UPI enablement of charge cards, said a report by BCG and Matrix Partners India last week.

In the meantime, the release likewise noticed the “need for giving convenient and consistent credit to farming and MSME areas.

” While the RBI is participating in empowering drives in regions, for example, MSME loaning through its Regulatory Sandbox, different partners like banks and fintech organizations are likewise teaming up to give computerized credit conveyance component in a practical and bother-free way, the national bank said.


The credit stream to the MSME area has stayed light throughout the course of recent months. As per the most recent SIDBI-TransUnion CIBIL MSME Pulse Report, the complete credit payment to MSMEs expanded by around 43% in Q4 FY22 from the year-prior period. 

While bank credit to medium businesses became by 47.6 percent in June 2022 on top of 59% development a year prior, credit development to miniature and little ventures advanced rapidly to 29.6 percent in June 2022 from 11.6 percent in June 2021.

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